Pundits Say Note 7 Flaw Was Known Ahead Of Recall

Samsung probably knew about the exploding batteries in the Note 7 before they became public according to Bloomberg’s business intelligence division

Bloomberg analyst Anand Srinivasan said this was the only way they could have announced a solution to the problem so quickly.

Samsung has given itself just two weeks to start replacing hundreds of thousands of its flagship Note 7 devices withdrawn from sale after reports of exploding batteries.It’s estimated 400 thousand of the devices has been sold worldwide including Australia.

The timing couldn’t be worse for Samsung which hoped the release of the Note 7 would steal the thunder from the launch this week of Apple’s new iPhone.

It has certainly captured the headlines but for all the wrong reasons. While Apple watchers aren’t expecting too many changes to the current iPhone model Samsung’s off key Note could be advantageous to the US giant.

Both investors and consumers are asking questions of the company following an earlier debacle with Samsung’s washing machines that sparked 50 fires in Australia alone

The exploding Note 7 batteries will place pressure on Samsung to consider changes at the top, a process not unusual within the corporation when something goes wrong. Last year Jong-Kyun Shin, was replaced as head of Samsung’s smartphone business by Dongjin Koh, in a bid to halt stalling growth. Samsung has an unusual management structure with three co-CEOs – Oh Kyun Kwon, Boo-Kuen Yoon and JK Shin and investors must be wondering whether the company’s right hand knows what the left is doing.

While the initial recall was welcomed in Australia consumers groups in the US say Samsung did not go through official government channels, deciding instead to go it alone.

Samsung has maintained its lead in smartphones despite a global slowdown in handset sales and to maintain market share the South Korean electronics giant needs to reassure customers its top of the line Note 7 is safe.

The Note 7 had drawn praise for features such as an iris scanner and big screen with curved edges but all its efforts for the release may have gone to waste.